Most of today’s media “success stories” are about digitally “native” companies like Google and Facebook. Meanwhile, many of the great brands of the pre-digital era seem to be struggling for mere survival in the face of digital disruption. And it’s hard to think of a media segment more threatened by digital than newspapers. As advertisers have shifted more of their budget to web and mobile, almost 70% of all newspaper advertising dollars have evaporated over the last 15 years.
Yet something astonishing is happening at the company that President Trump regularly demeans as “the failing New York Times.” NYT stock is up nearly 60% in the last six months to a nine-year high, and in May, the company issued its quarterly earnings report which reflected the profound impact of their efforts at digital transformation.
According to the report, digital subscription revenue increased 40% year-over-year. Furthermore, among The Times’ three million subscribers – a threshold it crossed earlier this year – 2.2 million are paying digital subscribers, representing almost 70% of their total subscriber base. Although print advertising in The Times declined around 18% year-over-year, those losses were more than offset by increases in digital subscriptions and digital advertising, resulting in year-over-year increases in both revenue and profitability. As CEO Mark Thompson said in the Q1 2017 earnings report , “These results show the current strength and future potential of our digital strategy…to deliver substantial revenue.”
So how did they do it in an era where so many great pre-digital brands, both media and otherwise, are failing to compete effectively with digital disruptors? I sat down with two senior executives who are helping lead The Times’ digital transformation. In order to understand the key principles behind their recent digital turnaround, I met with Kinsey Wilson, EVP, Product and Technology, and Editor for Innovation & Strategy; and with Tristan Boutros, SVP & COO for Digital Product, Strategy and Design. In our far-ranging discussion, five key themes emerged that form the basis of the approach The Times has pursued, and which, has thus far, exceeded their forecasts and expectations.
These five themes are not unique to newspaper or media companies, but can be applied to most, if not all, companies looking for the path to successful digital transformation.